DCG Works with Vendor to Validate Function Point Counts for Outcome-Based Management of Outsourced Application Development

A major national telecommunications company decided to outsource a majority of its large application development portfolio to a vendor. The company and the vendor agreed to a set of minimum standards for quality and productivity, associating monthly payment with the amount of software delivered in releases, measured in function points. To comply with this standard, the vendor established a Function Point Analysis program to measure its software quality and productivity.

They agreed to use DCG Software Value to independently validate the vendor’s function point counts. This case study discusses the outsourcing arrangement and DCG's role in validating the vendor's function point counts.